Commentary

D7.5113 Floor calculation

Corporate tax
Corporate tax | Commentary

D7.5113 Floor calculation

Corporate tax | Commentary

D7.5113 Floor calculation

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

The floor calculation is simply the sum of two amounts:

  1.  

    (1)     the 'applicable percentage' of the average of the opening and closing liabilities of the category of business concerned less the average of the opening and closing values of assets which are linked to that category of business; and

  2.  

    (2)     the FA 1989, s 83(2) return arising on assets linked solely to the category of business.

The definition of 'applicable percentage'

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